Proview rejects Apple's $16M offer for 'iPad' trademark - report
Apple offered Proview 100 million yuan, or $16 million U.S., to settle their ongoing dispute over ownership of the "iPad" name, but Proview reportedly rejected the offer.
Proview rejected the offer because officials at the company seek $400 million U.S. for the rights to the iPad name, according to a report in China's Beijing Times, summarized by The Next Web. Proview apparently seeks that much money to appease its creditors, eight of which are Chinese banks.
One profile of Proview published in February portrayed the company as a nearly dead operation where officials are banking in on their trademark dispute with Apple. At its peak, the company employed 18,000 people and sold a stripped-down PC it called the Internet Personal Access Device, or iPAD.
Though the latest reports suggest there remains a great disparity between what Proview wants and what Apple is willing to pay, the $400 million sought by Proview is much less than earlier reports, which suggested the company was seeking $2 billion in damages from Apple.
Proview's only chance for a payout is in China, as the company's attempted lawsuit against Apple in California was tossed out this week by a Santa Clara County judge.
Earlier this week, Proview's attorney publicly said that his company and Apple have discussed a compensation package to settle their dispute out of court. He revealed that Apple proposed a settlement sum, but no specific amount was detailed.
Proview's Shenzhen-based operation has accused Apple of acting "with oppression, fraud and/or malice," when it used a proxy company, U.K.-based IP Application Development, Ltd., to buy the rights to the "IPAD" name. Those rights were purchased from a Taiwanese affiliate in 2009 for a reported 35,000 British pounds, or $55,000.
The company has argued that Apple acted fraudulently to acquire the iPad trademark, and that the purchase is void because Proview Shenzhen didn't authorize its affiliate to sell the trademark. For its part, Apple maintains that it legally purchased the rights to the Chinese "iPad" trademark, but Proview refuses to uphold its end of the bargain.
Proview rejected the offer because officials at the company seek $400 million U.S. for the rights to the iPad name, according to a report in China's Beijing Times, summarized by The Next Web. Proview apparently seeks that much money to appease its creditors, eight of which are Chinese banks.
One profile of Proview published in February portrayed the company as a nearly dead operation where officials are banking in on their trademark dispute with Apple. At its peak, the company employed 18,000 people and sold a stripped-down PC it called the Internet Personal Access Device, or iPAD.
Though the latest reports suggest there remains a great disparity between what Proview wants and what Apple is willing to pay, the $400 million sought by Proview is much less than earlier reports, which suggested the company was seeking $2 billion in damages from Apple.
Proview's only chance for a payout is in China, as the company's attempted lawsuit against Apple in California was tossed out this week by a Santa Clara County judge.
Earlier this week, Proview's attorney publicly said that his company and Apple have discussed a compensation package to settle their dispute out of court. He revealed that Apple proposed a settlement sum, but no specific amount was detailed.
Proview's Shenzhen-based operation has accused Apple of acting "with oppression, fraud and/or malice," when it used a proxy company, U.K.-based IP Application Development, Ltd., to buy the rights to the "IPAD" name. Those rights were purchased from a Taiwanese affiliate in 2009 for a reported 35,000 British pounds, or $55,000.
The company has argued that Apple acted fraudulently to acquire the iPad trademark, and that the purchase is void because Proview Shenzhen didn't authorize its affiliate to sell the trademark. For its part, Apple maintains that it legally purchased the rights to the Chinese "iPad" trademark, but Proview refuses to uphold its end of the bargain.
Comments
Good. Screw 'em. Apple never should have offered that nonsense.
Offer them $55,000 next. When they reject it, keep stringing the trial along until they go bankrupt and can't negotiate.
"IPAD" was worthless until Apple obtained the trademark. Proview, accept it because there is no way in hell you're gonna get anything better.
This was never going anywhere.
LOL. I like the idea of insulting them with an even lower offer, just to piss them off.
Quote:
Originally Posted by Tallest Skil
Good. Screw 'em. Apple never should have offered that nonsense.
who says they did? Proview. Which means that it could be total bunk and Apple made no such offer. Or any offer other than "give us what we already bought and have proof was included and we will end our lawsuits against you"
As for the $400 million, Apple didn't create this mess it's not their job to fix it. Frankly I think if China isn't willing to back up Apple, who says they have proof of their claims in very clear writing from Proview's executives, then it's time to pull the iPad from China. Pull selling it, pull making it there. Why should Apple risk that the government might actually consider the whole export ban to protect one of their countries companies and it's IP (that they took money for and won't turn off). Remove the risk by getting out of China
Quote:
Originally Posted by Tallest Skil
Good. Screw 'em. Apple never should have offered that nonsense.
Offer them $55,000 next. When they reject it, keep stringing the trial along until they go bankrupt and can't negotiate.
The trial is over.
Proview view should get nothing.
All their cases should be thrown out.
Let the crooked Chinese legal system decide on their BS case and then if necessary change the name in China.
What would happen if Apple let Proview keep the iPad name in China but set up stores outside of China that provided iPads to people that ended up smuggling the iPads into China. Sales would still occur, albeit at lower volumes but the internal demand in China might force Proview to take the last offer.
Quote:
Originally Posted by I am a Zither Zather Zuzz
The trial is over.
So what's this business in Hong Kong coming up?
Quote:
Originally Posted by charlituna
who says they did? Proview. Which means that it could be total bunk and Apple made no such offer. Or any offer other than "give us what we already bought and have proof was included and we will end our lawsuits against you"
As for the $400 million, Apple didn't create this mess it's not their job to fix it. Frankly I think if China isn't willing to back up Apple, who says they have proof of their claims in very clear writing from Proview's executives, then it's time to pull the iPad from China. Pull selling it, pull making it there. Why should Apple risk that the government might actually consider the whole export ban to protect one of their countries companies and it's IP (that they took money for and won't turn off). Remove the risk by getting out of China
This is why I have maintained that there will be a brokered solution with the Chinese government leaning pretty hard on Proview to get this out of the news.
All Apple and Foxconn need to do it leak that they are scouting potential new factory location in Thailand or India or some other country that would be very happy to have that level of foreign investment.
Well Apple, if you were willing to offer 16 million dollars to Proview, I say forward that check to your legal department and say to those Apple lawyers regarding Proview, "Bury Them!"
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Quote:
Originally Posted by jungmark
"IPAD" was worthless until Apple obtained the trademark. Proview, accept it because there is no way in hell you're gonna get anything better.
Apple used a proxy for the obvious reason that anyone would know an "i" trademark would be worth a lot more to Apple than any other company and raise the asking price. When the value of the trademark depends on the identity of the buyer and the identity is concealed, is that a fair deal?
Quote:
Originally Posted by Magic_Al
Apple used a proxy for the obvious reason that anyone would know an "i" trademark would be worth a lot more to Apple than any other company and raise the asking price. When the value of the trademark depends on the identity of the buyer and the identity is concealed, is that a fair deal?
I tend to agree- that was very sneaky indeed. Not sure if it's illegal, but definitely shady.
"The company has argued that Apple acted fraudulently to acquire the iPad trademark, "
That is so stupid... oh sure, Apple really acted fraudulently, more like your company is acting fraudulently.
Waiting for bankruptcy does not end the issue. Creditors may see this as a way to get something out of nothing, even something large, and the rights may be sold to someone else with the resources to keep fighting Apple. This may be why Apple made an offer.
If Apple has indeed made an offer (and a non-trivial one at that), doesn't this suggest the case is not so open and shut, black and white or easy to put to rest?
Quote:
Originally Posted by nofear1az
"The company has argued that Apple acted fraudulently to acquire the iPad trademark, "
That is so stupid... oh sure, Apple really acted fraudulently, more like your company is acting fraudulently.
I'll hazard a guess that the "I'm not a poopy-pants, you're a poopy-pants" style argument probably won't work even in a Chinese court of law.
Quote:
Originally Posted by Magic_Al
Apple used a proxy for the obvious reason that anyone would know an "i" trademark would be worth a lot more to Apple than any other company and raise the asking price. When the value of the trademark depends on the identity of the buyer and the identity is concealed, is that a fair deal?
Yes. Don't forget that part of Apple's success relies on secrecy. How do they keep the name iPad secret without going through a proxy? The only reason that Proview would know the iPad name would be worth more to Apple is if they knew of Apple's plans. But doesn't Apple have the right to keep that secret?
One could also ask is it fair to ask more for the same product just because you know the buyer has more money?
In this case there are high level chinese politicians involved with Proview, is a political case and has to be handled like that.
Quote:
Originally Posted by jnoel
I tend to agree- that was very sneaky indeed. Not sure if it's illegal, but definitely shady.
Perfectly legal. If Apple had gone in as "Apple", proview would have demanded $2Billion. Is that fair?
Walt Disney did it before he build Disney World. Did Orlando or the residents sue him for $400MM dollars.